New Chinese policy proposal plots phase out of national solar subsidies

By Carrie Xiao
Facebook
Twitter
LinkedIn
Reddit
Email
Subsidies could be phased out for all new solar projects, starting with centralised large-scale projects this year. Image: Fotopedia.

A draft proposal put forward by China’s National Development and Reform Commission could see subsidies for new solar projects phased out, starting this year.

The draft proposal, ‘Notice on Matters Related to the Renewable Power Feed-in Tariff Policy in 2021’, was submitted this week and would, if enacted, mean no further subsidies would be allocated to newly registered centralised solar PV projects or decentralized C&I-scale solar projects approved by China’s central government.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

But tariffs for new projects, or guaranteed power purchase prices, would continue to be set through the combination of guide and competitive prices in whichever province the projects are developed in. These prices are determined by calculating the benchmark coal power price in 2020 as well as the average market price for power per province.

Furthermore, these tariffs will remain set for the purchasing hours determined for each project, with power generated outside of those purchasing hours rewarded with tariffs determined purely by the market price at that time.

The document also details proposed changes to subsidies for residential solar projects, capping the subsidy standard for decentralized PV plants in the 2021 fiscal year to RMB0.03/kWh, which would apply to all power generated by the installation.

From 2022, China’s central government would no longer subsidise new residential solar installations under the proposals.

For national renewable demonstration projects, tariffs would be set depending on the local coal power benchmark price approved by China’s National Energy Administration, however no subsidies will be made available for projects completed after 1 January 2022.

However, the document does open the window for local governments to establish their own policies, encouraging them to introduce more targeted support for solar PV, solar thermal and wind projects.

The National Development and Reform Commission is soliciting for responses to the proposals, which could yet be tweaked.

10 March 2026
Frankfurt, Germany
The conference will gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing out to 2030 and beyond.

Read Next

August 6, 2025
A subsidiary of JinkoSolar has filed a lawsuit in Munich accusing LONGi Green Energy and several subsidiaries of infringing on a solar cell manufacturing patent.
August 6, 2025
US tracker manufacturer FTC Solar has posted US$19.9 million in revenue in the second quarter of 2025, up year-on-year for the second quarter in a row.
August 5, 2025
China’s leading polysilicon firms are reportedly considering shutting down one third of the country’s polysilicon capacity and restructuring the sector, following years of overcapacity and tumbling prices.
Premium
August 5, 2025
Although residential solar in the US has lost its main tax credit, there is still hope that its popularity and economics could win the day.
Premium
August 4, 2025
Legislation withdrawing vital tax credits has plunged the US solar market into turmoil, putting project deployments and manufacturing at risk.
Sponsored
August 4, 2025
Risen Energy’s Bob Hao discusses the company’s latest range of integrated energy solutions and recent developments in HJT module technology.

Subscribe to Newsletter

Upcoming Events

Media Partners, Solar Media Events
September 2, 2025
Mexico City, Mexico
Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK